The appointment of Christine Lagarde as president of the ECB has been greeted with euphoria by financial markets. That reaction in itself should be a warning signal. When risky assets soar in the middle of a huge bubble due to a central bank appointment, the supervising entity should be concerned. Continue reading Lagarde, the ECB and the next crisis
Category Archives: On the cover
Greece: defeat of populism at the hands of reality
The defeat of Tsipras in Greece is the loss of those who came to power promising that two plus two would equal twenty-two, of paper promises and policies that harm those that they pretend to protect. Continue reading Greece: defeat of populism at the hands of reality
Forget the G20, global manufacturing recession is here
The G20 summit has not generated unexpected or significant headlines and, of course, is not a catalyst for a relevant change in the global economic trends. The United States and China have only agreed to postpone tariff increases, but no real trade agreement has been reached.
If we look at the last G20 meeting conclusions, nothing has really improved. Plans to introduce new tariffs are delayed, and the result is exactly what happened in the previous G20. The real news is the evidence of a manufacturing recession. Continue reading Forget the G20, global manufacturing recession is here
Infrastructure Spending. Careful With The Construction Mirage
Facing the evidence of sluggish growth, governments are calling for massive infrastructure plans as the answer to a weak economy and a way of boosting growth. However, the reality of most large government infrastrcuture plans is actually more than disappointing. Continue reading Infrastructure Spending. Careful With The Construction Mirage